Biggest Asian Bank Deal of 2011, So Far

The biggest banking deal of the year so far in Asia is also a game of catch up for the acquirer.

Bloomberg

Malayan Banking Bhd., or Maybank, will pay US$1.4 billion for Singaporean brokerage Kim Eng Holdings Ltd. to build up its presence in the Southeast Asian brokerage business. The Kim Eng deal would give Maybank a foothold in the Thai market where it has no presence and will build on its 2009 acquisition of Bank Internasional Indonesia.

The Maybank deal, announced Thursday, highlights the growing importance of the stock broking business to financial firms in the region, particularly as regional equities outperformed other markets in 2010.

As the 10-nations of the ASEAN bloc move closer economically, regional players such as CIMB and Singapore’s DBS Group Holdings have adopted strategies to capitalize on these growing trade ties. Maybank wants a piece of the action.

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